Following is a question by the Hon Chan Hoi-yan and a reply by the Acting Secretary for Health, Dr Cecilia Fan, in the Legislative Council today (June 10):

Question:

     The Hospital Authority (HA) is a statutory body receiving government funding for operation, and its expenditure and financial position have all along been a matter of concern in society. But at present, HA has not fully disclosed the detailed remuneration information on its key management personnel, thus depriving the public of a complete and accurate understanding of the remuneration expenditure for the relevant personnel. In this connection, will the Government inform this Council:

(1) whether it knows the total remuneration expenditure and the average rate of increase in the annual remuneration for HA's key management personnel over the past five years by post category, including the Chief Executive, Cluster Chief Executives, and Directors and other division heads of the Head Office;

(2) given that according to HA's annual report, the basic salaries and other short-term employee benefits of key management personnel rose by around HK$6 million in 2024-2025 over the preceding year, with a rate of increase close to 9 per cent, whether the Government knows the main reasons for this, including whether a personnel increase was involved; if so, of the posts and numbers of personnel involved respectively; and

(3) whether it knows if HA has any performance indicators for reference when determining the rate of remuneration increase for the relevant key management personnel under the existing mechanism; if so, of the details; if not, whether the authorities will consider introducing the relevant indicators?

Reply:

President,

     The Hospital Authority (HA) is a statutory body established under the Hospital Authority Ordinance (Cap. 113) (the Ordinance). The members of the HA shall form its governing body with authority, in the name of the HA, to perform the functions and exercise the powers of the HA. The Government provides funding to the HA annually for the provision of public healthcare services. Schedule 3 to the Ordinance stipulates that the remuneration and the terms and conditions of employment of HA's employees shall be determined by the HA.

     The HA currently manages 43 public hospitals and healthcare institutions, 49 specialist outpatient clinics, and 75 Family Medicine Clinics, employing over 97 000 people. The HA needs to effectively attract and retain outstanding management talent to carry out its managerial duties. Among the employees of the HA, key management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of the HA, including the Chief Executive, Cluster Chief Executives, Directors and other division heads of the Head Office. Currently, there are 15 key management personnel positions in the HA. The remuneration of key management personnel is determined according to the relevant policies established by the HA Board, and they do not enjoy any variable components based on work performance. Their total remuneration mainly consists of basic salaries and other short-term benefits. These short-term benefits include allowances and one-off payments for encashment of untaken leave upon retirement or departure from service.

     The annual pay adjustment for all HA employees makes reference to the civil service annual pay adjustment and takes effect only after approval by the HA Board.

     On the other hand, in accordance with established policy, when the HA recruits new key management personnel, the remuneration for the relevant position will be reset to the starting point of the corresponding pay scale, which will result in a reduction in the remuneration of key management personnel.

     The HA has been strictly controlling the remuneration expenditure of key management personnel. Taking 2024-25 with the most recent audited accounts as an example, after excluding the additional staff costs arising from a newly created key management personnel position, one-off payments for leave encashment of retirees and salary increments granted under the established mechanism, the actual adjustment in remuneration expenditure for key management personnel in that year was 2.06 per cent, equivalent to approximately $1.42 million. In 2024-25 and the preceding four financial years, the average year-on-year increase in the total remuneration expenditure of key management personnel was only 1.6 per cent, with a decrease recorded in certain years.

     In consultation with the HA, the consolidated reply to the question raised by the Hon Chan Hoi-yan is as follows:

(1) From 2020-21 to 2024-25, the total remuneration expenditure of key management personnel of the HA increased from $77.8 million in 2020-21 to $82.6 million in 2024-25, representing an average annual increase of 1.6 per cent. During the same period, the remuneration expenditure of the then-Chief Executive increased from $6.2 million to $7.1 million, with an average annual increase of 3.5 per cent. The total remuneration expenditure of other key management personnel increased from $71.6 million to $75.5 million, representing an average annual increase of 1.4 per cent. Details are set out in Annex 1.

(2) To co-ordinate major capital works projects under the Hospital Development Plan, including the construction of Kai Tak Hospital and the redevelopment of Kwong Wah Hospital, the HA created the new key management personnel position of "Director (Development and Works)" in March 2024. The full-year financial impact of this position was first reflected in 2024-25.

     After excluding the expenditure related to the newly added key management personnel position, one-off payments for leave encashment for retirees, and salary increments granted under the established mechanism, the actual year-on-year increase in the expenditure on basic salaries and other short-term employee benefits for key management personnel in 2024-25 was 2.06 per cent, equivalent to approximately $1.42 million.

(3) As mentioned above, the HA has an established mechanism to strictly control remuneration expenditure. The annual pay adjustment of the HA makes reference to the civil service annual pay adjustment and requires approval by the HA Board. Furthermore, the HA's established salary increment mechanism grants salary increments based on staff performance ratings. Specifically, employees are required to undergo a Staff Development Review each year to assess their work performance. Only those who are assessed as having performed satisfactorily will be granted a salary increment. In addition to undergoing the Staff Development Review, key management personnel are also required to participate in performance evaluation meetings for a more detailed assessment of their performance.

     Adjustments to the remuneration of the HA's key management personnel have all along been made in strict accordance with the established mechanism. This remuneration mechanism balances the need to attract and retain talent with the requirement for prudent control of staff costs, helping the HA maintain a professional and stable workforce to deliver high-quality and efficient healthcare services to the public of Hong Kong. Thank you, President.

Ends/Wednesday, June 10, 2026
Issued at HKT 14:01

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